BILL NUMBER:  AB 2006
  VETOED	DATE: 09/25/2004




To the Members of the California StateAssembly:  Iam
returningAssembly Bill 2006 without my signature.  Developing a
reliable cost effective energy supply for California is a top
priority of my administration. To ensure investment and to develop
electricity generation, California must provide for long-term
resource adequacy, consistent with the State Energy Action Plan, in a
manner that creates stability and predictability in wholesale
markets.A transparent, competitive procurement process is essential
to obtain the best possible deal for California ratepayers.  The
California Public Utilities Commission (PUC) has acted on my request
to accelerate resource adequacy requirements.I remaincommitted to
meeting our future energy needs through a combination of energy
efficiency, demand response, renewable energy and
traditionalgenerating resources.This bill creates a redundant and
burdensome energy procurement process that would steer the state back
towards monopoly utilities without some of the consumer protections
necessary to protect ratepayers.  These provisions direct ratepayers
to assume all the risk associated with electricity generation
including cost overruns while ensuring utility profits.  Many of the
provisions in this bill are unnecessary and duplicate existing
statute or policy decisions that can be found in AB 57, PUC
decisions, and Energy Commission proceedings.  However, AB 2006 adds
layers of mandates and process that favor monopoly utilities and will
significantly delay ongoing proceedings at the commission, resulting
in considerable delay in power plant construction.  I commend the
author for including sections that address transmission siting and
permit streamlining, along with anattempt to direct the PUCto report
back on their progress to improve rate design. Ensuring sufficient
supplies of reliable, competitively priced electricityremainsthe
cornerstone of my energy policy. I look forward to working with the
legislature to continue tobring clarity and consistency to California'
s energy policy in the coming months.  For these reasons I am
returning this bill without my signature.  Sincerely,  Arnold
Schwarzenegger